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Enterprises can walk out on slow broadband contracts following new rules from Ofcom.

The watchdog's new protections will mean broadband providers have to be more honest and give customers a minimum guaranteed speed at the point of sale.

If their service fails to meet the promised level, firms will then have a month to improve performance or face the customer walking out of their contract without a financial penalty.

Evan Dixon, managing director, Viasat Europe, said the new rules mark the start of a new era for broadband service speed, designed to make contracts more clear and honest and hold ISPs to their promise.

"For too long businesses have had to settle for “up to” marketed speeds rarely met," Dixon said. "With so many different types of connections it’s vital organisations can make an informed decision about what exactly they can expect from the broadband service they purchase. With growing developments like streaming video services and so much business now being done in the cloud, organisations will require higher and higher broadband speeds to support these. Any business looking to move office within the UK will most likely make the level of connectivity available a key part of its decision process."

Dixon added that the new rules will ensure that businesses are getting the services they need and provides necessary transparency for local areas on where broadband infrastructure investment needs to be made.